FAQs (Frequently Asked Questions)

What is BOSA?

BOSA is a short form for Back Office Services, which basically stands for savings account services. This is an account that one opens and becomes a member of the society

What is FOSA

FOSA (Front Office Services Activities) This is a section within our operations department through which members can open and operate FOSA savings accounts and get loan facilities.

What are the requirements for a loan?

You need to be an active member for at least 3 months to be eligible for a loan. The loan amount will be three times your savings.

What are the requirements for openning an account?

One is required to fill in a FOSA Account Opening form, attached with a copy of your National ID card, or Passport number, and two colored passport photos

Can one clear a loan in full before repayment is over?

Yes, that is allowed and does not attract early clearance charge whatsoever. 

What are the acceptable Securities for a loan?
  • Guarantors
  • Deposits in the SACCO
  • Land
  • Buildings
  • Bank guarantees
  • Corporate guarantee
  • Share certificates
  • Vehicles
  • Endowment Insurance policies 
Who is eligible to be a guarantor?

Any active member in good standing is allowed to be a guarantor provided that one has not over guaranteed.A guarantor must be willing and able to repay the loan guaranteed if the loanees fails to pay.

What is the role of a guarantor?

Guarantors are jointly (together) and severally (individually) liable for the repayment of a loan in the event of the borrower’s default.

What are the rights of a guarantor?
  • The right to obtain a copy of the letter of guarantee or contract of guarantee and any other documents in relation to the loan transaction
  • The right to the information on the outstanding balance of the account of the borrower with the Society subject to the borrowers consent.
  • The right to call upon the borrower to pay off the loan to release him from all his liabilities under the guarantee. This right can be exercised at anytime and even before the Society has called upon the borrower to pay the debt.
  • The right to be indemnified by the borrower for any payment made to the Society. This means that he can sue the borrower for the amount that he has paid to the Sacco.
What does a borrower need to know about a the loan the he is guaranteeing
  • Loan  amount
  • Repayment period
  • Applicant source of income
  • Applicants term of employment 
  •  Applicants  contact details
  • Any other details relating to the applicants character
Who decides on what interest to charge?

Interests on loans are reviewed from time to time by the BOD on recommendation of Management.

Does interest charged by the Sacco fluctuate during the term of the loan?


Any amendments on interest will affect new applications only.

Can a member use dividends or interest rebates to clear loans

Yes by communicating the same in writing

What is Sacco Shares?


  • The amount representing a member’s portion in the equity of the society as a co-owner.
  •  No member other than a Cooperative Society shall hold more than one-fifth (1/5) of the total shares
  • Shares are not used to determine the eligibility of a borrower or a guarantor.
  • Shares are not withdraw able but are transferable.
What is the loan application procedure?

A loan application must be done in writing on prescribed forms which must be fully filled. The applicant must attach all relevant documents.  Alteration will not be allowed.